EUR/GBP dropped sharply to as low as 0.7995 and took out 0.8067 support as recent decline continued. A temporary low is in place as EUR/GBP recovered form 0.7995 and initial bias is neutral this week for consolidations. But upside should be limited by 38.2% retracement of 0.8395 to 0.7995 at 0.8148 and bring fall resumption. Below 0.7995 will extend current fall to 100% projection of 0.8330 to 0.8221 from 0.8505 at 0.7896 next.

In the bigger picture, long term consolidation pattern from 0.9799 is still in progress with fall from 0.9083 as the third leg. Decline from 0.9083 is still in progress and there is no sign of bottoming yet. Though, we'll continue to look for reversal signal inside 0.7693/8186 support zone. The consolidation from 0.9799 could possibly complete near to 61.8% retracement of 0.6535 to 0.9799 at 0.7782. On the upside, break of 0.8505 resistance will argue that fall from 0.9083 is finished. In that case, EUR/GBP could have either started another leg inside the consolidation pattern, or resumed the larger up trend.

In the long term picture, long term up trend from 2000 low of 0.5680 shouldn't be over yet and the choppy fall from 2008 high of 0.9799 should be a correction only. We'd expect such correction to be contained by 0.7963/0.8186 support zone and bring up trend resumption. Rise from 0.5680 is still expected to extend beyond 0.9799 high eventually.